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(1 point) Hourly wages at Manufacturing Plant A very from worker to worker, with

ID: 3040248 • Letter: #

Question

(1 point) Hourly wages at Manufacturing Plant A very from worker to worker, with an average hourly wage of $14.33, and a standard deviation of $2.44 per hour, or PlanA-2.44. In an attempt to attract new employees, a newly constructed Manufacturing Plant B claims that its employees will be paid, on average more than than employees at Manufacturing Plant A. Assume that the standard deviation in hourly wages at Plant B is the same as at Plant A, or (a) Choose the correct statistical hypotheses. A. Ho : XPlantB = 14.33 HA·XplantB > 14.33 A :MplantB = 14.33 = 14.33 HA.1PlantB#14.33 D. Ho : Plant? 14.33 HA : PlantB 14.33 HA : XPlantB 14.33 B. Ho HPlantb > 14.33 H F. Ho : Plan:B = 14.33 HA : (b) Statistical testing of the null hypothesis is to be carried out by randomly selecting 40 employees at Plant B. If the mean/average hourly wage of these 40 employees is greater than $14.61, then there is enough statistical evidence to indicate that the mean hourly wage of employees at Plant B is greater than the mean hourly wage of employees at Plant A. What level of was used here? Enter your answer to at least three decimal places. (c) The average of the sample of n = 40 workers was found to be X = 14.31 . What decision can you make from this sample? A. Employees at Plant B do earn more on average compared to employees at Plant A B. The hourly wages at Plant B need to be Normally distributed to do the test C. Employees at Plant B do not earn more on average compared to employees at Plant A. D. The sample size is too small to conduct a statistical test, so a decision cannot be made (d) If the average hourly wage of all workers at Plant B is $14.58, what is the probability of concluding using the decision criteria outlined in part (b) that the mean hourly wage of all employees at Plant B is not greater than the mean hourly wage of all employees at Plant A? Enter your answer to at least three decimals. Answer =

Explanation / Answer

a) Correct answer: option (F)
b) Test statistic Z = (14.61 - 14.33) / (2.44/sqrt(40)) = 0.7258
Here Z value > Z critical value (0.7063) at alpha = 0.240, we reject H0
Correct answer : alpha = 0.240

c)Correct answer: option (C)
since Test statistic Z = (14.31 - 14.33) / (2.44/sqrt(40)) = -0.05183
Critical z: 0.7063
Here Z value > Z crtical value, so we accept H0

d) cut point xbar = 14.61 + 0.7063*2.44/sqrt(40) = 14.8825
P(Xbar > 14.8825 / H1: mean = 14.58)
= P[Z > (14.8825-14.58)/(2.44/sqrt(40)] = p[ Z > 0.7841) =

Answer:  0.21649